In this article, we will look at the 20 Most Advanced Countries in the World.
Global Economy at a Glance
The global economy has surpassed expectations by exhibiting resilience amidst high inflation. The IMF forecasts the world economy to grow at 3.2% in 2024 and 2025, the same as in 2023. The persistent economic growth is driven by increased government spending, strong consumer spending, and an unanticipated boost to the labor force. The advanced economies are expected to grow at slightly higher rates of 1.7% and 1.8% in 2024 and 2025 respectively. Global inflation is forecasted to decline from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025. Overall, the economy is expected to grow moderately with the US leading as a top performer so far as it has resumed its pre-pandemic growth. This year it is expected to grow by 2.7%, compared to the 1.7% growth of advanced economies. You can also look at the 50 Best Countries in the World.
Global Tech Trends
Over the past few years, the global technology landscape has witnessed a significant transformation. The two most dominant trends that emerged in 2023 were generative AI and electrification, according to a report by McKinsey & Company. Generative AI has seen an increase of 700% in Google searches, including a surge in job postings and investment. The rapid advancement in AI is further reflected by the development of large language models (LLMS) which are continuously expanding their capabilities. The innovative use of AI can be a dramatic breakthrough in various industries. For instance, researchers at the Massachusetts Institute of Technology and ETH Zurich have developed an AI model that is capable of accurately determining the stage of Ductal carcinoma in situ (DCIS), one of the most common breast cancer conditions by utilizing low-cost and simple tissue images. This could be a revolutionary step toward early breast cancer diagnosis and treatment.
The other top tech trends, electrification and renewables have shown resilience despite broader economic challenges. Their growth is driven by climate change commitments of countries and energy security issues. With the rising concern about reducing carbon emissions, investments in renewables and electric vehicles have surged over the past few years.
Overall the tech sector saw a decline in the economic environment, reflected by a 30-40% decline in tech equity investments. However, the overall growth trajectory of technological innovation presents a positive outlook. Investors have become more cautious in their investments. Nonetheless, AI benefits from increased investment due to its strong growth prospects. The surge in AI is also evident in the publications and patents related to Artificial Intelligence. The talent landscape of the tech sector has experienced significant layoffs in 2024 facing the highest decline in tech-related job postings. This was offset by the high demand for specialized skills in generative AI and electrification. Read 25 Most Innovative Economies in 2024.
The Global AI Leader
Nvidia Corporation (NASDAQ:NVDA) has emerged as a leader in the fast-growing global technology landscape, especially in the AI space. The company is a leading designer of graphic processing units (GPU), chips that are necessary for advanced computing. In the past two decades, the GPU maker has transformed into one of the largest semiconductor companies in the world. Its continuous innovation has helped it capture a significant share of the market in high-growth sectors such as AI.
Its dominance in AI hardware is evident by its share of over 80% in the data center GPU market. Its enterprise platform, Nvidia AI Enterprise has tools such as NVIDIA NIM and AI Foundry which help businesses and organizations with the deployment of generative AI at scale. Moreover, AI companies like OpenAI, DeepMind, and Meta utilizing Nvidia Corporation’s (NASDAQ:NVDA) chips further solidify its stronghold over the AI market. The AI leader stands at the forefront of GPU technology with continuous innovations. Its forthcoming AI factory platform, Blackwell GPU offers up to 4 times faster training and 30x prompter inference than its predecessors.
In its Q2 2024 investor letter, Patient Capital Opportunity Equity Strategy said:
“NVIDIA Corporation (NASDAQ:NVDA) continued to lead both the market and the portfolio, remaining a top performer in the period gaining 36.7%. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models.
While we expect competition to increase, we think NVDA can continue to maintain top market share. While many are concerned with backlog times shortening, we think the rollout of the B100 (Backwell GPU), which promises 2.5x better performance for only 25% more cost, later this year will create more shortages. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”
Nvidia Corporation (NASDAQ:NVDA) has recorded strong financial performance over the past decade, with its revenue growing at a compound annual rate of more than 20%. In the first quarter, the company logged a record-high surge of 262% year-over-year in its revenue which amounted to $26 billion. The company also recorded a 392% growth in its earnings which came to $0.61 per share. Ending the quarter with strong free cash flow, the company demonstrated its ability to leverage its position to generate significant financial gains.
Nvidia Corporation (NASDAQ:NVDA) is poised to capitalize on various growth opportunities going ahead. The automotive sector is expected to be its biggest enterprise vertical, fueled by a surge in demand for AI in autonomous driving technology. Moreover, the ever-evolving consumer internet sector presents a significant growth avenue as it heavily relies on Nvidia’s technology for AI assistants. With generative AI gaining traction as one of the biggest technology trends, the company can expect continued growth opportunities in the consumer internet sector. In the past trailing four quarters, nearly 40% of its data center revenue was driven by inference. Surging inference along with user growth is expected to increase the demand for advanced generative AI technology, positioning NVIDIA Corporation (NASDAQ:NVDA) as a market leader.
Now, let’s have a look at the 20 most advanced countries in the world.
A businessman walking down a city street, the skyline in the background representing the company’s United States domicile.
Methodology
To compile our list of the most advanced countries in the world, we consulted our piece on the countries that spend the most on research and development and shortlisted the top 30 countries based on absolute R&D spending (estimated by utilizing R&D as a percentage of GDP data 2021). Then, we used their Human Development Index (HDI) scores which measure the overall development of a country across key dimensions like life expectancy, education, and per capita income. We then assigned 70% and 30% scores to both our R&D spending and HDI ranks and calculated an average for each country. Finally, we listed the countries in descending order of the composite ranking.
Note: We have excluded Israel from our list despite high R&D spending due to the ongoing war in the Middle East obstructing economic development and advancement.
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20 Most Advanced Countries in the World
20. United Arab Emirates
Absolute R&D Spending: $6.21 billion
Human Development Index: 0.937
Composite Ranking: 19.3
The United Arab Emirates is ranked 20th on our list of the most advanced countries in the world. The country has an absolute R&D spending of $6.21 billion.
19. Finland
Absolute R&D Spending: $8.86 billion
Human Development Index: 0.942
Composite Ranking: 17.0
Finland boasts a stable and modern economy and is home to a well-developed digital infrastructure and a skilled labor force. It is ranked 19th on our list
18. Singapore
Absolute R&D Spending: $7.55 billion
Human Development Index: 0.949
Composite Ranking: 16.8
Singapore is a high-income country with a stable political environment. The country highly invests in education and infrastructure. It spent 2.16% of its GDP on research and development in 2021.
17. Austria
Absolute R&D Spending: $15.61 billion
Human Development Index: 0.926
Composite Ranking: 15.6
Austria is an advanced economy that offers a high standard of living. The high-income country spent an estimated $15.61 billion on research and development in 2021.
16. Spain
Absolute R&D Spending: $20.66 billion
Human Development Index: 0.911
Composite Ranking: 14.4
Spain is one of the most highly developed countries in the world. In 2021, the country spent 1.43% of its GDP on R&D.
15. Norway
Absolute R&D Spending: $9.75 billion
Human Development Index: 0.966
Composite Ranking: 13.9
Norway is one of the most advanced Nordic countries. In 2021, the estimated spending on R&D in the country reached $9.75 billion.
14. Denmark
Absolute R&D Spending: $11.41 billion
Human Development Index: 0.952
Composite Ranking: 13.4
Denmark is the 14th most advanced country in the world. It offers a high standard of living and has an HDI score of 0.952. The country’s ICT sector is one of the key drivers of growth and is worth $35 billion.
13. Italy
Absolute R&D Spending: $31.34 billion
Human Development Index: 0.906
Composite Ranking: 12.94
Italy spent 1.45% of its GDP on research and development in 2021. It has a human development index score of 0.906.
12. Belgium
Absolute R&D Spending: $20.60 billion
Human Development Index: 0.942
Composite Ranking: 11.8
Belgium is ranked 12th on our list. Belgium’s regional government and the EU recently invested $1.6 billion in chip technology to reduce dependency on foreign suppliers. It had an R&D spending of $20.60 billion in 2021.
11. France
Absolute R&D Spending: $65.67 billion
Human Development Index: 0.910
Composite Ranking: 11.2
France has an HDI score of 0.910. It is one of the most advanced countries in the world. The tech sector in the country is rapidly growing, creating 47,000 tech-related jobs per year.
10. Sweden
Absolute R&D Spending: $20.22 billion
Human Development Index: 0.952
Composite Ranking: 11.0
Sweden is one of the top countries in Europe with the highest quality of life. It is an advanced country boasting a strong economy. In 2021, it spent an estimated $20.22 billion on research and development.
9. China
Absolute R&D Spending: $433.5 billion
Human Development Index: 0.788
Composite Ranking: 10.4
China is the second-largest country in the world by nominal GDP. In 2021, it spent a staggering $433.5 billion on R&D.
8. Netherlands
Absolute R&D Spending: $23.77 billion
Human Development Index: 0.946
Composite Ranking: 10.1
The Netherlands is one of the most technologically developed countries. In 2021, 10% of its total employment was related to high-tech.
7. Canada
Absolute R&D Spending: $34.07 billion
Human Development Index: 0.935
Composite Ranking: 9.8
Canada is one of the most advanced countries in America. In 2021, it spent an estimated $34.07 billion on research and development.
6. South Korea
Absolute R&D Spending: $89.65 billion
Human Development Index: 0.929
Composite Ranking: 8.7
South Korea is home to some of the biggest tech companies in the world. It is ranked 6th on our list of the most advanced countries. In 2021, the country spent 4.9% of its GDP on research and development.
5. Japan
Absolute R&D Spending: $165.93 billion
Human Development Index: 0.920
Composite Ranking: 7.8
Japan is one of the top leaders in technology and is ranked 5th on our list of the most advanced countries in the world. In 2021, its estimated research and development spending reached $165.9 billion.